one time impairment charge I wouldn''t care about at all - much more disappointing is the weak wafer shipment guidance going forward and management's comments about the Chinese government not paying promised subsidies
would cover here and wait for the Q4 earnings call - this is not the time to be short the stock - now that they have raised cash they will be able to predict a pick up in business for another six quarters or so until investors realize that the company is mostly hot air with the exception of the new low margin and ultra risky Apple business.
don't touch the shares here !!! wannbe smart guys have accumulated several 100,000s of shares in anticipation of the uplisting - it will take months for this overhang to be removed- watch this going back to $2
promising membrane technology but painfully weak management execution - will revisit the shares in the low $2s at the beginning of next year
I didn't get the reduced wafer guidance at first and additionally the conference call went pretty bad so my advice would be to stay on the sidelines.
ok - one can extrapolate the wafer guidance from the fully year wafer shipment outlook - so wafer shipments will be down a whopping 200 MW qoq which will of course impact revenues and profitability. So my calculation of a profitable Q4 looks pretty much wrong here - in fact revenues might come in below estimates.
conference call also going rather bad with analysts clearly puzzled about the impairment,reduced wafer shipment guidance and problems with getting paid solar subsidies from Chinese government entities.
in fact GTAT was forced to debook most of their wildly touted sapphire backlog - and given the fact that the company was as desperate to strike an ultra-low margin, high risk and EXCLUSIVE deal with Apple just to generate at least some revenues and cash flows in the short term I would wonder how many potential customers remain for GTAT now that they are entered active competition with them.
I have to correct myself - the company offers no wafer shipment guidance in its earnings release - in fact they obviously canceled some wafer contracts during the quarter to focus on their own module business.
so I would like to take a step back here from my advice - would stay on the sidelines here
as results and guidance actually are significantly better than expectations. Gross margins still lag behind peers though but with the closure of the old polysilicon plant is forecasted to increase up to the double digits starting this quarter. Would expect the company to earn a small profit in Q4 when translating margin and shipment guidance into revenues and eps.
while the huge impairment loss might #$%$ investors short term the closure of the outdated facility will actually improve earnings going forward as there will be no further depreciation expense on those assets and the company will be able to produce or buy polysilicon cheaper than before.
gross margins are projected (at the midpoint of guidance) to come in at 10% in Q4 which will be a 25% improvement qoq
the setback looks like a great chance for investors to get exposure to a leading Chinese solar play which will cross the break-even line next quarter. The impairment charge is one-time in nature and will in fact impact the company's future results quiet positively.
be careful though and play this using a scale in strategy starting below $3.70
GTAT made quite clear on the last call that THEIR solar business isn't rebounding at all. And the LED market is far from booming when looking at companies like CREE, VECO and AIXG. This is also evidenced in GTAT's net order intake which has been negative for some quarters now.
obviously the demand for the convertibles far outpaced the common share offering so the company decided to issue more debt than originally planned.
there's nothing wrong with strong demand for a debt offering and less immediate shareholder dilution than originally anticipated.
but actually I am wondering that even the heavily reduced share offering priced deeply in the hole - a whopping 13% below the price before the offering was announced - but given the share price development over the last few months I guess it is reasonable for investors to demand a high risk premium here
so with this additional cash infusion the company will be able to some more quarters of no-existent business going forward though debt is clearly mounting here
stop making others responsible for your personal mistakes - sure that jailbird Petersen cooked the books but even with manipulated figures the company never lived up to expectations - so a stop loss would have been a great idea I guess. Nobody forced you into this one and nobody told you to hold on to this or even average down after the mess became quite clear. So stop whining and move on.
sure you can and 95% of the people still long the stock will hold it until trading ceases finally at some point in the future.
at least he didn't pay for those shares so they still put $75,000 into his pockets
absolutely as this will be back below $0.50 next year as they of course won't deliver to their promises - they NEVER do.
But wait for a huge secondary first to bring the stock price down to $0.80 tomorrow
lol - this is a huge Brasilian wireless operator having deep financial troubles - there's just no way for this stock to pick up momentum
great trading vehicle but very questionable management